MPs warned against changes to salary sacrifice pensions

SPP says scrapping salary sacrifice would lead to reduction in employees’ take home pay

Martin Richmond
clock • 4 min read

The Society of Pension Professionals (SPP) has written to all 650 members of parliament to warn against the risks of reducing or removing salary sacrifice arrangements for pension contributions.

The SPP's paper said research commissioned and published by HM Revenue & Customs (HMRC) earlier this year showed the motivations for companies to offer salary sacrifice included national insurance (NI) savings for both employers and employees. The SPP noted HMRC's research has led to speculation that chancellor Rachel Reeves will look to make savings by abolishing or reforming salary sacrifice for pensions in her upcoming Budget later this month.  The SPP noted around a third of private sector employees use salary sacrifice arrangements, as well as almost 10% of public sector workers. Th...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

Editor's view: How disjointed is the government's salary sacrifice change?

Editor's view: How disjointed is the government's salary sacrifice change?

The editor's Friday Night Takeaway from 19 December

Jen Frost
clock 19 December 2025 • 3 min read
Pension reflections: Retirement's biggest moments of 2025

Pension reflections: Retirement's biggest moments of 2025

What can we expect to see for pensions next year?

Jenna Brown
clock 18 December 2025 • 15 min read
Women, wealth, and worry: How to close the retirement gender gap

Women, wealth, and worry: How to close the retirement gender gap

Julia Peake explores the retirement gender gap and suggests how it can be closed...

Julia Peake
clock 16 December 2025 • 4 min read